Life insurance is a contract in which a policyholder pays regular premiums in exchange for a lump-sum death benefit paid to the policyholder's beneficiaries. The lump-sum benefit is paid when the policyholder either passes away or a specific amount of time has passed. Life insurance policies can provide financial security for surviving family members by replacing lost income and covering expenses.

There are a number of different types of life insurance policies (sometimes referred to as products)—all of which generally fall under the categories of term life insurance and whole life insurance. The names and terms of different life insurance products in these two categories vary from one insurance company to another.

Some examples of life insurance products include:

• term life insurance

• whole life insurance

• universal life insurance

• indexed universal life insurance

• guaranteed universal life insurance

• variable life insurance

• variable universal life insurance

• hybrid life insurance with long term care

• group life insurance

• mortgage life insurance

• credit life insurance

• joint life insurance

• simplified issue life insurance

• guaranteed issue life insurance

• accidental death and dismemberment insurance

In North Carolina (NC), life insurance is regulated under state law and overseen by the North Carolina Department of Insurance. The regulation of life insurance policies in NC includes ensuring that insurance companies are financially solvent, policies are sold by licensed agents, and the terms of the policies comply with state statutes. Life insurance policies are contracts between the policyholder and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the death of the insured person or after a set period. The main types of life insurance available include term life insurance, which provides coverage for a specific term, and whole life insurance, which offers coverage for the insured's entire lifetime and typically includes a savings component. Other variations like universal life, variable life, and various hybrid policies offer different investment options and flexibility in premiums and death benefits. In NC, insurers must provide consumers with clear information about the terms and costs of the insurance policy, and there are provisions to protect consumers from misrepresentations and fraud. Policyholders have a grace period for late payments and the right to appeal if a claim is denied. It's important for consumers to review their policy documents and understand the specific terms and conditions, as these can vary significantly between different insurance products and companies.